5:19 PM t 35 ? v2.cengagenow.com Flexible Budget for Selling and Administrative

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5:19 PM t 35 ? v2.cengagenow.com Flexible Budget for Selling and Administrative Expenses for a Service Company Cloud Productivity Inc. uses flexible budgets that are based on the following data Sales commissions Advertising expense Miscellaneous administrative expense Office salaries expense Customer support expenses Research and development expense 15% of sales 20% of sales $8,500 per month plus 12% of sales $29,000 per month $14,000 per month plus 20% of sales $30,000 per month Prepare a flexible selling and administrative expenses budget for March for sales $500,000, and $600,000. (Use Exhibit 5 as a model.) volumes of $400,000, Cloud Productivity Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending March 31 Total sales Variable cost: $400000 $500000 $600000 Check My Work 2 more Check My Work uses remaining PreviousNext

Explanation / Answer

Selling and administrative expense budget :

Total Sales 400000 500000 600000 Variable cost Sales commission 60000 75000 90000 Advertising expense 80000 100000 120000 Miscellaneous administrative expense 48000 60000 72000 Customer support expense 80000 100000 120000 Total variable cost 268000 335000 402000 Fixed cost Miscellaneous administrative expense 8500 8500 8500 Office salaries expense 29000 29000 29000 Customer support expense 14000 14000 14000 Research and development expense 30000 30000 30000 Total fixed cost 81500 81500 81500 Total selling and administrative expense 349500 416500 483500

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